Iron Ore Mining in Brazil to 2020

Brazil had significant crude iron ore reserves of 31 billion tonnes as of February 2014. The country has high-grade reserves in the states of Para and Minas Gerais, with most operational mines located in the latter.

Iron ore production is expected to grow over the forecast period (2014–2020) to 656.1Mt, following expected increases in demand, mine expansion, and upcoming projects to 2016.

Scope

The report contains an overview of the Brazilian iron ore mining industry, together with the key growth factors and restraints affecting the industry.

It also provides information about reserves, production, consumption, prices, trade, the competitive landscape, major active, exploration and development projects, and the country's fiscal regime.

Key Highlights

• The mining industry has played a crucial role in Brazil’s economic development by generating employment, earning foreign revenue, and attracting foreign direct investment, with the industry accounting for 4% of GDP and employing 160,000 workers directly.

• Domestic iron ore consumption was 65.2Mt in 2013, compared with export estimates of 329.6Mt. Iron ore mined in Brazil is mostly exported to China, Japan, the Netherlands, South Korea, Germany, France and Oman.

• The Minas Rio and Carajas Serra Sul S11D projects, located in Minas Gerais and Para respectively, are expected to begin operations by the end of 2014 and the second half of 2016, with iron ore production capacities of 26.5 Mtpa and 90 Mtpa respectively.

• Brazil exported a record high of 170.1Mt of iron ore to China in 2013, an increase of 4% over the previous year. Chinese iron ore imports from Brazil increased substantially from 38Mt in 2003 to 170.1Mt in 2013.

Reasons to buy

Gain an understanding of the Brazilian iron ore mining industry, the relevant drivers and restraining factors, reserves, historic and forecast production, consumption, trade, prices, the competitive landscape, and the fiscal regime.

Companies mentioned

Vale SA

Table of Contents

1 Executive Summary

2 Iron Ore Mining in Brazil

2.1 Country Overview

2.2 Mining Overview

2.3 Iron Ore Mining in Brazil – Drivers

2.4 Iron Ore Mining in Brazil – Restraints

3 Iron Ore Mining in Brazil – Reserves, Production, Consumption and Trade

3.1 Reserves by Grade and Geographical Location

3.2 Historical and Forecast Production

3.3 Total Production by Form – Fines and Lumps

3.4 Total Production by State

3.5 Iron Ore Prices

3.6 Total Production by Major Mines

3.7 Total Production by Mining Method

3.8 Major Exploration and Development Projects

3.9 Iron Ore Consumption and Trade

3.9.1 Total consumption by end use, steel

3.10 Domestic Consumption vs Exports

3.10.1 Export to destination countries

3.11 Demand Drivers

3.11.1 Demand vs final uses

4 Competitive Landscape

4.1.1 Vale SA

5 Fiscal Regime

5.1 The Brazilian Mining Industry – Governing Bodies

5.1.1 Ministry of Mines and Energy (MME)

5.1.2 National Department of Mineral Production (DNPM)

5.1.3 Brazil Geological Survey (CPRM)

5.1.4 National Commission of Nuclear Energy (CNEN)

5.1.5 Industrias Nucleares do Brasil SA (INB)

5.1.6 Ministry of Science and Technology (MCT)

5.2 The Brazilian Mining Industry – Governing Laws

5.2.1 The Mining Code

5.2.2 Law No. 4.118

5.2.3 Law No. 6.189

5.2.4 Law No. 9765

5.3 The Brazilian Mining Industry – Mining Licenses

5.3.1 Exploration Authorization System

5.3.2 Exploration Authorization Permit

5.3.3 Mining Concession System

5.3.4 Environmental Impact Assessment (EIA) study for Mining Activity

5.3.5 Environmental Licensing for Mining Activity

5.4 The Brazilian Mining Industry – Rights and Obligations

5.4.1 Rights

5.4.2 Obligations

5.5 The Brazilian Mining Industry – Key Fiscal Terms

5.5.1 Royalty

5.5.2 Corporate Income Tax

5.5.3 Land Owner Royalty

5.5.4 Annual Tax

5.5.5 Withholding Tax

5.5.6 Depreciation Rates

5.5.7 Value Added Tax

5.6 The Brazilian Mining Industry – Future Development

6 Appendix

6.1 What is This Report About?

6.2 Methodology

6.3 Secondary Research

6.4 Primary Research

6.5 Contact GlobalData

6.6 About GlobalData

6.7 GlobalData’s Services

6.8 Disclaimer

List of Tables

Table 1: Iron Ore Mining in Brazil – Iron Ore Reserves – Vale S.A., 2013

Table 2: Iron Ore Mining in Brazil – Total Production (Million Tonnes), 2000–2020

Table 3: Iron Ore Mining in Brazil – Production by Form – Fines and Lumps (Million Tonnes), 2000–2020

Table 4: Iron Ore Mining in Brazil – Major Active Mines, 2014

Table 5: Iron Ore Mining in Brazil – Major Exploration Projects, 2014

Table 6: Iron Ore Mining in Brazil – Major Development Projects, 2014

Table 7: Iron Ore Mining in Brazil – Total Consumption by Type (Million Tonnes), 2001–2020

Table 8: Iron Ore Mining in Brazil – Consumption vs. Exports (Million Tonnes), 2001–2020

Table 9: Iron Ore Mining in Brazil – Export to Region and Destination Countries (Million Tonnes), 2013

Table 10: Iron Ore Mining in Brazil – Vale S.A., Major Projects, 2014

Table 11: The Mining Industry in Brazil – Uranium Licensing Fees (BRL), 2014

Table 12: The Mining Industry in Brazil – Federal Royalty (%), 2014

Table 13: The Mining Industry in Brazil – Mining Taxation (%), 2014

Table 14: The Mining Industry in Brazil – Depreciation Rates (Years and %), 2014

List of Figures

Figure 1: Iron Ore Mining in Brazil – Total Production (Million Tonnes), 2000–2020

Figure 2: Iron Ore Mining in Brazil – Production by Form – Fines and Lumps (Million Tonnes), 2000–2020

Figure 3: Iron Ore Mining in Brazil – Iron Ore Prices*, 2005–2013 (US$/tonne)

Figure 4: Iron Ore Mining in Brazil – Iron Ore Prices, 2013–2020 (US$/dmt)

Figure 5: Iron Ore Mining in Brazil – Total Consumption vs Consumption by Steel (Million Tonnes), 2001–2020

Figure 6: Iron Ore Mining in Brazil – Consumption vs. Exports (Million Tonnes), 2001–2020

Figure 7: Iron Ore Mining in Brazil – Export to Destination Countries (%), 2013

Figure 8: Iron Ore Mining in Brazil – Chinese Imports (Million Tonnes), 2001–2013

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